Fence Company Business Insurance

Every fence company needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.

This article will cover the main types of business insurance and help you find the best fence company insurance.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Fence Company

The most common and comprehensive type of fence company business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While a fence company isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your fence company is sued, you could face fees totaling hundreds of thousands of dollars (or more).

Find the Right Policy at the Best Rate

Using a fully online insurance provider saves time and money and offers the most accurate quotes.

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Cost of General Liability Insurance

The average fence company in America spends between $500-$1,500 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a fence company to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Common Situations That General Liability Insurance May Cover for a Fence Company

Example 1:  An electronic gate malfunctions and closes too fast, injuring the customer’s leg. General liability insurance may cover any medical expenses and legal fees associated with the incident, whether the gate was improperly installed or simply malfunctioned.

Example 2:  The homeowner decides to step in and help build the fence. Upon picking up the tool and attempting to use it, they severely injure their back. The accidental injury to the non-employee may be covered by your general liability insurance policy. If the claim is approved, your insurance would help pay for any expenses related to treating the injury and/or any lawsuits that arose from the incident.

Example 3: The building of the fence causes damage to the neighbor’s property. If while constructing the fence a piece of equipment or material flies over the fence and damages the neighbor’s property, your general liability insurance may cover the cost of repairing the damage. If the neighbor decides to sue, it may also cover any legal costs and judgments or settlements related to the case.

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage Fence Companyes Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all fence companies should obtain:

Commercial Auto Insurance

Commercial auto insurance helps protect you against financial loss if your work vehicle is damaged in an accident or if you hit another vehicle or object while driving your work vehicle for business purposes. If you are found to be the at-fault driver, this type of insurance may pay for the repairs and/or replacement of your work vehicle, any personal injuries to you, the other driver, or passengers, and any damage to the other person’s vehicle or property.

Commercial Umbrella Insurance

Commercial insurance policies don’t always cover the entire cost of an incident or accident. When this happens, you need commercial umbrella insurance, which covers the remainder of the costs associated with the accident or incident.

Workers’ Compensation Insurance

Occasionally, your employees may experience injuries on the job, like a back injury, a bad cut, or a slip and fall. Workers’ compensation helps pay for the medical costs associated with treating the injury.

In addition to the policies outlined above, there are a few other types of coverage your fence company may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Business Owner’s Policy

Business owner’s policies, if they are available in your area, combine general liability insurance, property owner’s insurance, and potentially other types into one policy

Commercial Property Insurance

Commercial property insurance is a good idea for any fencing installer that stores their equipment and materials at a brick and mortar commercial location. These types of policies cover damage to the building and stored equipment that is the result of weather damage, fire, and vandalism.

Employee Dishonesty Coverage

Employee dishonesty coverage covers employee theft of materials, equipment, money, and other items from your place of business or the worksite.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your fence company:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Fence Company Business Insurance FAQ

Can I buy business insurance online for my fence company?

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a fence company?

You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my fence company from everything?

Not necessarily. Certain exceptions may be written directly into your fence company insurance policy, and some perils may be entirely uninsurable.

Is general liability the same as business owners?

A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.

How do I choose the best general liability insurance?

The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles. 

However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.

Do I need business insurance if I already have an LLC?

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.

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